Global Supply Chain Strategy Case Study: Corporate Strategy

...to support the corporate objective and demonstrate their abilities to the marketplace, the corporation desired to bring the entities together, have them operate together, institute performance measurements, and drive financial and operational improvements.

A global industrial equipment manufacturer engaged Establish to review corporate strategy. Desiring to push the company forward beyond previously set goals, the Board of Directors set a new objective for the company – to increase shareholder value through a sustained increase in share price.

The corporation manufactured multiple product lines – some related and some independent – at numerous plants in North America and Asia. All products were industrial in nature and supplied to industry for use in industrial settings or for inclusion in other equipment by other original equipment manufactures.

Over time the corporation had acquired numerous businesses, growing the company ten fold. In order to conservatively manage the acquisitions and maintain the profit levels, the company did not attempt to aggressively rationalize or reorganize the acquisitions. The company operated most businesses as independent entities with little interaction between businesses or between the entity and corporate. Now, to support the corporate objective and demonstrate their abilities to the marketplace, the corporation desired to bring the entities together, have them operate together, institute performance measurements, and drive financial and operational improvements.

Establish evaluated abilities of the corporation by spending time with the individual Board members, and with the members of the management team at corporate and at each entity, and by visiting physical operations. Working with the top management team, Establish then developed a new multi-tiered corporate strategy with objectives, strategies and tactical action plans. The new full strategy was tested and further developed with expanded management team meetings and rolled out to become the basis for the new direction of the corporation.

The corporation has now achieved a significant, sustained increase in share price and multiple performance improvements across the board. Through the new success, the corporation is now moving on to continued growth and performance improvement.